In Northern Cyprus, employers are now allowed to reduce foreign workers’ salaries by 40% if accommodation and meals are provided

The authorities of Northern Cyprus have introduced a regulation allowing employers to cut foreign employees’ wages by 40% if the company covers their housing and food expenses.

The new policy was presented by Minister of Labour and Social Protection Sadık Gardiyanoğlu. According to him, the amendment aims to eliminate wage disparities between local and foreign workers. Previously, foreign workers effectively earned more than citizens due to receiving free accommodation and meals while on the same minimum wage.

Under the new rule, if an employer officially provides accommodation and meals to a foreign employee, they are permitted to deduct up to 40% from that employee’s salary. According to the minister, this will help equalize working conditions and create a fairer wage system.

At the same time, the government is introducing the concept of a "national minimum wage," which will apply exclusively to TRNC citizens. Local residents will not be affected by sectoral wage adjustments.

In addition, as part of a broader social reform package, authorities announced that medications will be free of charge in state pharmacies for specific groups, including pensioners, people with disabilities, orphans, and other socially vulnerable populations.

The measures will come into force soon and, according to the minister, aim to improve living conditions and reduce social tension.